Another leftover from Cold War days is the continuing issue of Taiwan, and China’s insistence that the democratic, capitalistic island is really a part of China.  As China continues to upgrade and modernize its military, the Communist dictators in Beijing may be too tempted to hold back their new and improved military.  Analysts see that Taiwan could still defend itself, largely through geography; meaning the Taiwan Straits.

If China attacked, would the U.S step in?

Excerpt from:  http://www.iht.com/articles/ap/2007/07/17/america/NA-GEN-US-China-Taiwan.php

 China’s
misplaced confidence in war control a danger U.S. intelligence officer says

The Associated Press, July 17, 2007

WASHINGTON: A U.S. intelligence officer on Tuesday
said China appeared to have too much confidence that it could
manipulate the scale of a war with rival Taiwan.

Lonnie Henley, an East Asia specialist in the office of the Director
of National Intelligence, said Chinese officials are increasingly
studying the concept of "war control" to evaluate scenarios should
fighting break out with Taiwan…